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Texas RoadhouseFRA:ROW +2.58%87 ROC (Joel Greenblatt) % is 22.72% as of Mar. 2026, which is 24% above its 10-year median of 18.27. GuruFocus rates FRA:ROW with a GF Score™ of 87/100 and a GF Value™ of €169.26. The stock has 3 warning signs investors should review. Among 362 Restaurants companies, Texas Roadhouse ranks better than 68.78% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Texas Roadhouse's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 22.72%.
The historical rank and industry rank for Texas Roadhouse's ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:ROW'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.47 Med: 18.27 Max: 22.82
Current: 19.07
During the past 13 years, Texas Roadhouse's highest ROC (Joel Greenblatt) % was 22.82%. The lowest was 1.47%. And the median was 18.27%.
FRA:ROW's ROC (Joel Greenblatt) % is ranked better than 68.78% of 362
companies
in the Restaurants industry
Industry Median: 8.545
vs FRA:ROW: 19.07
Texas Roadhouse's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 47.00% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Texas Roadhouse ROC (Joel Greenblatt) % Related Terms
Texas Roadhouse ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Texas Roadhouse's ROC (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:ROW vs YUMC, DPZ, BROS: ROC (Joel Greenblatt) % Comparison
For the Restaurants subindustry, Texas Roadhouse's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Texas Roadhouse ROC (Joel Greenblatt) % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Texas Roadhouse's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Texas Roadhouse's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a ROC (Joel Greenblatt) % of 22.72% mean?
Texas Roadhouse (FRA:ROW) has a ROC (Joel Greenblatt) % of 22.72% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Texas Roadhouse and its competitors. This is 24% above median its historical median of 18.27. Over the past decade, Texas Roadhouse's ROC (Joel Greenblatt) % has ranged from 1.47 to 22.82. According to the industry distribution chart, Texas Roadhouse ranks #113 out of 362 companies in the Restaurants industry, placing it in the top 31.2%.
Is Texas Roadhouse's ROC (Joel Greenblatt) % too high?
Texas Roadhouse's current ROC (Joel Greenblatt) % of 22.72% is 24% above median its 10-year median of 18.27. Over the past 10 years, this metric has ranged from a low of 1.47 to a high of 22.82. The Restaurants industry median ROC (Joel Greenblatt) % is 8.55. Texas Roadhouse's value of 22.72% is 165.9% above this industry median. Based on the distribution chart, Texas Roadhouse ranks #113 out of 362 companies in the Restaurants industry, which is above the industry midpoint. Overall, Texas Roadhouse has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does Texas Roadhouse's ROC (Joel Greenblatt) % compare to YUMC and DPZ?
According to the Restaurants industry distribution chart, Texas Roadhouse ranks #113 out of 362 companies for ROC (Joel Greenblatt) %. This puts Texas Roadhouse in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 8.55. Texas Roadhouse's value of 22.72% is 165.9% above this benchmark. Historically, Texas Roadhouse's own ROC (Joel Greenblatt) % has ranged from 1.47 to 22.82 over the past decade. While the company's 10-year median is 18.27 vs. the industry median of 8.55, Texas Roadhouse has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC (Joel Greenblatt) % for a Restaurants company?
The median ROC (Joel Greenblatt) % among Restaurants companies is 8.55, based on 362 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Roadhouse's current ROC (Joel Greenblatt) % of 22.72% is 165.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Texas Roadhouse and its competitors. For the Restaurants industry, the median ROC (Joel Greenblatt) % is 8.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Roadhouse's current ROC (Joel Greenblatt) % is 22.72%, which is 24% above median its own 10-year median of 18.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Roadhouse stock overvalued right now?
Texas Roadhouse (FRA:ROW) has a current ROC (Joel Greenblatt) % of 22.72%. The stock's GF Value™ is €169.26, compared to a current price of €169.10 — trading 0.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 22.72%, which is 24% above median its 10-year median of 18.27 and 165.9% above the Restaurants industry median of 8.55. Texas Roadhouse's overall GF Score™ is 87/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Texas Roadhouse (FRA:ROW), the current ROC (Joel Greenblatt) % is 22.72% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Texas Roadhouse (FRA:ROW) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Roadhouse stock appears to be undervalued.
The current stock price of €169.10 is trading 0.1% below its estimated GF Value™ of €169.26.
Key valuation signals for FRA:ROW:
ROC (Joel Greenblatt) %: 22.72% (24% above median its 10-year median of 18.27)
GF Value™: €169.26 vs. price of €169.10 (0.1% below fair value)
Industry Position: 165.9% above the Restaurants median (#113 of 362)
No single metric tells the full story. See the FRA:ROW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Texas Roadhouse Inc is a restaurant company operating predominantly in the casual dining segment. The company manages its restaurant and franchising operations by concept and, as a result, has identified Texas Roadhouse, Bubba's 33, Jaggers, and retail initiatives as separate operating segments. In addition, it has identified Texas Roadhouse and Bubba's 33 as reportable segments. Maximum revenue for the company is generated from the Texas Roadhouse segment, which is a moderately priced, full-service, casual dining restaurant concept offering steaks, a selection of ribs, seafood, chicken, pork chops, pulled pork, vegetable plates, and an assortment of hamburgers, salads, and sandwiches. Geographically, the majority of the firm's restaurants are in the USA, with a few in foreign countries.
87GF Score
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